The Los Angeles Clippers have been dealt a significant blow by the NBA, as the league announced on Wednesday that the team will forfeit five first-round draft picks and pay a hefty fine of $30 million. This decision comes after an investigation revealed serious salary cap violations linked to star player Kawhi Leonard.
According to the NBA, the Clippers will lose their first-round draft selections for the years 2029 through 2033. The investigation found that the team engaged in practices that allowed Leonard to circumvent salary cap regulations through sponsorship deals with companies affiliated with the franchise.
In addition to the draft pick penalties, Clippers owner Steve Ballmer has been banned from all league and team activities for one year. Team president of business operations Gillian Zucker will also serve a one-year suspension without pay, while Lawrence Frank, the president of basketball operations, faces a six-month suspension. Leonard himself has been fined $700,000 for his involvement in the violations.
NBA Commissioner Adam Silver expressed his disappointment regarding the situation, emphasizing the importance of adhering to the league's salary cap rules. He stated, "The NBA's collectively bargained system for determining player compensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans. I’m deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct. The severity of the penalties reflects the seriousness of the violations."
The investigation, conducted by the law firm Wachtell, Lipton, Rosen & Katz, identified a pattern of misconduct involving the Clippers and Leonard. It was found that the team facilitated sponsorship income deals between Leonard and four companies—Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance—that had existing agreements with the franchise. The Clippers allegedly incentivized these companies to engage with Leonard by promising them business opportunities.
Moreover, the investigation uncovered that the team paid for personal expenses incurred by Leonard and his representatives, as well as failed to report improper solicitations for off-court income opportunities made by Leonard’s former business manager, Dennis Robertson. Leonard's actions, through Robertson, resulted in violations of salary cap rules due to the acquisition of improper off-court income and the pressure placed on the Clippers to assist in these endeavors.
As a result of these findings, Robertson has been banned from engaging with NBA teams or personnel for a period of five years. The NBA and the National Basketball Players Association have agreed that the penalties are final and binding, although the league has indicated that it is still receiving information related to the case and may consider further actions if necessary.
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